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Appraisal after remodel
Posted on 7/17/19 at 3:36 pm
Posted on 7/17/19 at 3:36 pm
TL/DR: Will an appraisal differentiate between houses that need to be gutted when doing an updated appraisal on my house?
Has anyone had any experience, in Jefferson Parish would be preferred, with getting an appraisal after a remodel.
I am looking to take out a home equity loan on my house, but don't quite have the equity I need to get a fair rate because of the original appraisal.
When we bought the house about 4 years ago, the appraisal magically came back at the exact same price as the offer we put in on the house. However, when I looked at the comps, the appraisal should have been about 10% higher. Since then, we completely remodeled the house and need a new appraisal. will they just rely on the original
My other concern is there have been several sales in my neighborhood where the house was sold cheap because it was a complete remodel or gut job. Do they take those into consideration?
Has anyone had any experience, in Jefferson Parish would be preferred, with getting an appraisal after a remodel.
I am looking to take out a home equity loan on my house, but don't quite have the equity I need to get a fair rate because of the original appraisal.
When we bought the house about 4 years ago, the appraisal magically came back at the exact same price as the offer we put in on the house. However, when I looked at the comps, the appraisal should have been about 10% higher. Since then, we completely remodeled the house and need a new appraisal. will they just rely on the original
My other concern is there have been several sales in my neighborhood where the house was sold cheap because it was a complete remodel or gut job. Do they take those into consideration?
8
Posted on 7/17/19 at 3:49 pm to Weekend Warrior79
We just had an appraisal done and our house increased in value over $150k since our last appraisal 8 yrs ago. Now we just recently remodeled our master bath and kitchen as well. We had homes sell in our neighborhood which haven't been updated in probably 15-20 yrs that I feel brought down our appraisal.
The only way the appraiser would know they haven't been updated though is if they would have seen the inside, which I know they don't. I just know because I've been in the houses. So they just went off the most recent sold prices and sq ft and took those considerations into account.
Not sure if this helps, but this was our experience from a month ago.
The only way the appraiser would know they haven't been updated though is if they would have seen the inside, which I know they don't. I just know because I've been in the houses. So they just went off the most recent sold prices and sq ft and took those considerations into account.
Not sure if this helps, but this was our experience from a month ago.
Posted on 7/17/19 at 4:52 pm to Weekend Warrior79
They will order a new appraisal when you open a new HELOC.
Posted on 7/17/19 at 4:54 pm to Weekend Warrior79
quote:
magically
Perfect word. Appraisers have an ability to magically get to the number you need, as long as it's reasonable.
Make sure the appraiser knows your house was remodeled, and others weren't.
Posted on 7/17/19 at 7:15 pm to Weekend Warrior79
You need to explain to the appraiser exactly what you’ve done in the remodel since the original. Need to make sure they know a lot has changed. I still felt like I got a bit shortchanged but our appraisal after remodel was about 80% higher than before. Had an appraisal for Heloc and to get rid of pmi after and one was significantly better than the other. All depends on who you get. The one that came back better had me give her all invoices from contractor and list of what all was done. That seemed to help differentiate.
Posted on 7/17/19 at 7:52 pm to Weekend Warrior79
You not willing to do a cah-out refinance? Did prices go down in your area?
Your lender will send a new appraiser out.
It actually works to your benefit that the original from 4 years ago wasn’t 10% higher
You should have a nice thick booklet on all the updates etc.
Get a real estate agent to send you all the sold homes in your neighborhood from the past 90 days. Find the ones with the most similar sqft etc (they should do this for free, if not, lie and say you’re thinking of selling)
Your lender will send a new appraiser out.
It actually works to your benefit that the original from 4 years ago wasn’t 10% higher
You should have a nice thick booklet on all the updates etc.
Get a real estate agent to send you all the sold homes in your neighborhood from the past 90 days. Find the ones with the most similar sqft etc (they should do this for free, if not, lie and say you’re thinking of selling)
Posted on 7/18/19 at 11:09 am to Weekend Warrior79
Nope no benefit financially. Just enjoy your remodel.
Posted on 7/18/19 at 3:09 pm to Weekend Warrior79
quote:
Will an appraisal differentiate between houses that need to be gutted when doing an updated appraisal on my house?
Yes, condition and quality of craftsmanship are taken into account on any appraisal. What makes you think otherwise?
quote:
Since then, we completely remodeled the house and need a new appraisal. will they just rely on the original
The new appraisal will look at your house in its current condition in the current market using resent sales for comps. Your sale 4 years ago (with or without your reno) is far too old to be used as a comp.
quote:
My other concern is there have been several sales in my neighborhood where the house was sold cheap because it was a complete remodel or gut job. Do they take those into consideration?
If one of these gut job sales is used as a comp, the appraiser will adjust the comp’s price up to take the quality difference between that house and yours. These adjustments are clearly noted on the appraisal.
Posted on 7/19/19 at 11:47 am to Weekend Warrior79
did you add sq ft to the house with the remodel? that is the key to a higher appraisal after a remodel. You will always see bump in value for updating a house. What most people expect to see out of remodel affecting the price of the house comes with adding sq ft.
Posted on 7/19/19 at 12:40 pm to LoneStarRanger
quote:
Get a real estate agent to send you all the sold homes in your neighborhood from the past 90 days. Find the ones with the most similar sqft etc (they should do this for free, if not, lie and say you’re thinking of selling)
This above is great advice.
My neighborhood is similar to what you are describing where some houses are completely renovated high end and others are bulldozed for new construction. I have always pulled my own comps of houses I know are similar and provided them to the appraiser in a nice way. "I'm not trying to tell you how to do your job but I know these houses and they are very similar to mine in the neighborhood."
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